I think it would be c, because the employees are usually transporting equipment in and out.
Answer:
B. violates the matching principle
Explanation:
The direct write-off method makes an accounting period take the bad debt expense for a sale which occur in a previous period. Therefore this expense was deferred over the accounting periods. This violates the matching principles.
The matching principles states the revenues and expenses should be acknowledge on the period they occur. In this case the bad debt expense, occur on the period of sale but, with the direct write-off method it is recognize on a subsequent period, generating a distorsion on the net income of the present and future accounting cycles.
The answer is B. A system that regulate by the interactions between producers and consumers
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Answer:
Cost to make $337,600
Cost to make $344,400
The company should make the product
Explanation:
Calculation to determine the total incremental cost of making 84,000 and buying 84,000 units
COST TO MAKE
Relevant per unit Relevant fixed cost Total relevant cost
Variable cost per unit $2.90 - $243,600(84000*$2.90)
Fixed manufacturing costs - $94,000 $94,000
Cost to make $337,600
($243,600+$94,000)
COST TO BUY
Relevant per unit Relevant fixed cost Total relevant cost
purchase per unit $4.10 - $344,400[$4.10*84000]
Cost to make $344,400
Based on the above calculation the cost of buying is higher than the cost of making therefore the company should MAKE the product.